Best Zinc Stocks on the TSX in 2017

Wondering what the best zinc stocks are? Check out this list of four zinc companies that have seen share price increases so far in 2017.

best zinc stocks

Zinc prices surged in 2016, and many market participants are expecting the base metal to perform even better this year.

Positive sentiment has been supported by Glencore’s (LSE:GLEN) production cuts last year, as well as increasing demand not only in China, but also worldwide. According to Andrew Thomas, senior analyst – zinc markets, at Wood Mackenzie, zinc prices will average $3,200 per tonne in 2017 and hit $4,000 midway through next year. Not bad considering prices are now at about $2,600.

Unsurprisingly, investors are becoming increasingly interested in finding the best zinc stocks. To help with that tough task, we’ve put together a brief overview of four zinc-focused companies on the TSX that have seen share price gains year-to-date. Read on to learn what they’ve been up to in 2017.

1. Lundin Mining (TSX:LUN)

Current price: $7.09; year-to-date gain: 16.56 percent

Lundin Mining operates in Chile, the US, Portugal and Sweden. The company primarily produces zinc, nickel and copper, though it also puts out some cobalt as a by-product. Its zinc operations include the Zinkgruvan mine in Sweden and the Neves-Corvo mine in Portugal.

“[A] final Feasibility Study on our Neves-Corvo Zinc Expansion Project, expected to approximately double current zinc production, is on track to be delivered very soon with an expectation of fast tracking this significant value added project,” President and CEO Paul Conibear commented in an April press release. In 2017, the company expects to produce a between 152,000 and 157,000 tonnes of zinc.

2. Trevali Mining (TSX:TV)

Current price: $1.20; year-to-date gain: 7.08 percent

Another of this year’s best zinc stocks is Trevali Mining, a zinc-focused base metals miner with two commercially producing operations. The company is producing zinc and lead-silver concentrates from its 2,000-tonne-per-day Santander mine in Peru and its 3,000-tonne-per-day Caribou mine in New Brunswick. Trevali also owns the Halfmile and Stratmat base metals deposits, also located in New Brunswick; they are currently in the preliminary economic assessment stage.

It has been a busy year so far for Trevali. In March, the company reached a $400-million deal to purchase zinc assets from Glencore. The same month, Trevali updated its resource estimate for Santander. In Q1 2017, the company produced 36,576 dry metric tonnes of zinc concentrate.

3. Teck Resources (TSX:TECK.B,NYSE:TECK)

Current price: $26.75; year-to-date gain: 5.21 percent

Teck Resources bills itself as Canada’s largest diversified resource company, with business units focused on zinc, copper, steelmaking coal and energy. The company operates the Red Dog mine, one of the world’s largest zinc mines, as well as the Pend Oreille mine in the US.

The company reported zinc in concentrate production of 146,000 tonnes in Q1 2017, along with refined zinc production of 78,000 tonnes.

4. Hudbay Minerals (TSX:HBM,NYSE:HBM)

Current price: $7.86; year-to-date gain: 0.37 percent

Last on this list of best zinc stocks is Hudbay Minerals, an integrated mining company that produces copper concentrate and zinc metal at operations across the Americas. The company’s zinc operations include the 777 and Lalor mines in Manitoba.

In March, Hudbay provided an operational update, noting that it expects zinc production at Lalor to increase to 90,000 tonnes contained in concentrate in 2017 from 71,000 in 2016. The company is also forecasting a 25-percent increase in its zinc production due to the resequencing of the mine plan at 777.

The data for this article was retrieved on May 2, 2017 using The Globe and Mail’s market data filter. Only TSX-listed zinc companies with market capitalizations greater than $50 million are included.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Trevali Mining is a client of the Investing News Network. This article is not paid-for content.

This article is updated periodically. Please scroll the top for the most recent information.

Best Zinc Stocks of 2016 on the TSX

By Priscila Barrera, 2016

In the last months of 2016 the rally in metals, that was ‘too fast and too furious’ for some analysts, rose zinc prices to multi-year highs. The surge was supported by expectations of higher demand and less supply due to mine closures, production cutbacks and speculation about US president-elect Trump infrastructure plan.

In 2015 zinc prices struggled, dropping significantly in the last quarter. But in November, zinc prices jumped to gain nearly 90 percent since the beginning of the year. Here is a list of the best zinc stocks of 2016 generated using The Globe and Mail’s market data filter that does not include companies with a market cap of less than $50 million.

1. Arizona Mining (TSX:AZ)

Current price: $3.07; year-to-date gain: 844.62 percent.

Arizona Mining is focused on the exploration and development of it 100% owned Hermosa Project located in Santa Cruz County, Arizona.  The Hermosa Project is a premier zinc-lead-silver deposit. The company’s updated Taylor sulfide resource showed significant growth – 31.1 M tons Indicated and 82.7 M tons Inferred vs prior Inferred resource of 43.4 M tons.

Metallurgical testing indicates very good recoveries, simple processing and high quality, clean concentrates. There is substantial exploration potential on their extensive land package. The highly experienced management team are working to release the preliminary economic assessment at the end of Q1 2017.

2. Golden Minerals (TSX:AUM)

Current price: $0.95; year-to-date gain: 239.29 percent.

Golden Minerals is a precious metals mining company that owns the Velardeña Properties, a high-grade silver and gold resource with lead and zinc base metals, in Durango, Mexico and El Quevar, an advanced exploration property, in the province of Salta, Argentina.

The company reported $1.7 million in revenue for the third quarter of 2016. They also expect to complete the 2,000 meter core drilling program on the Rodeo property that started in June 2016 by the end of the year.

3. Trevali Mining (TSX:TV)

Current price: $1.33; year-to-date gain: 160.78 percent.

Next on the list of best zinc stocks on the TSX is Trevali Mining, a zinc-focused, base metals mining company with two commercially producing operations. The Santander Mine in Peru, where the company recently discovered new high-grade zinc-lead-silver mineralization, is a 2,000 tonne per day underground mine and mill complex which includes production from three major deposits. In July this year, they started commercial production at their Caribou zinc mine where the company continues on ramping operations towards 3,000 tonne per day levels.

Trevali also reported a record in their total concentrate sales revenue of $57.5 million which is up 99 percent compared to the second quarter of the year.

4. Canadian Zinc (TSX:CZN)

Current price: $0.25; year-to-date gain: 142.86 percent.

Canadian Zinc is an exploration-stage company that is focusing on the development of the Prairie Creek property, a zinc-lead-silver mineral resource, in the Northwest Territories in Canada. They are also engaged in the exploration of base metal properties in Newfoundland and Labrador, Canada.

In September 2015, Canadian Zinc announced an upgrade to the mineral resources at the Prairie Creek Project increasing to 8.70 million tonnes averaging 9.5 percent zinc, 8.9 percent lead and 136 g/t silver.

5. Lundin Mining (TSX:LUN)

Current price: $6.87; year-to-date gain: 80.79 percent.

Last but not least on the best zinc stocks on the TSX for 2016 is Lundin Mining, a base metals company with operations in Chile, US, Portugal and Sweden. Primarily producing copper, nickel and zinc, Lundin Mining reported that for the third quarter of 2016 their sales increased $21.3 million compared to the same period last year. Their zinc production at the Neves-Corvo mine was 17,642 for the quarter exceeding last year’s due to higher recoveries. The company estimates that their total zinc production for the year will be around 145,000-155,000 tonnes.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Arizona Mining and Trevali Mining are clients of the Investing News Network. This article is not paid-for content.

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